Short Sale to Stop Foreclosure
Short Sale to Stop Foreclosure
Short Sale is one another way to stop your foreclosure and this can also save your credit report from being dented. Late mortgage payment and foreclosures are the two most important factors that affect your credit report. Short sale is the only option if you ever fail to repay your loan and are facing a foreclosure. Though you can use other available methods too but its better to go for short sale as it gives you much more control over the whole process.
Many borrowers have thinking that they cannot sell the house if they are facing the foreclosure but short sale is simple selling your house in fewer amounts than your loan. It is easy process but most lenders make it sound difficult. There are normally three different steps that you should do for a short sale.
Pre-qualification: It involves the process of meeting the lender and explaining him your condition and your intention to sell the house to avoid the foreclosure. Most lenders provide a form for short sale. You have to fill up the required information in the form and attach it with document asked like, paycheck stubs, tax return, bank statements etc. These documents will prove your inability to repay the loan.
After you qualify for the short sale, you have to market your property in order to find a qualified buyer. You may have to hire a realtor or advertise in local newspaper and magazines. In short sale you are only selling the house to stop the foreclosure so you cannot sell the house to gain profit from it or in a price that is higher than the total loan amount. In most places the foreclosure process takes a long time so, you should not dump the idea of short sale if you don’t find a buyer.
Once you find the qualified buyer then you can submit your purchase contract and the buyer’s information to the lender. Once the lender accepts the offer then the deal is finalize and sent to the title company for clearance of any escrow payment.
Short sale is a good way to save yourself and your credit report from having a dent in it for years. Once you fall in foreclosure you loose al the equity and have to re manage your credit report from zero. After you finish the short sale you will have absolutely avoided the foreclosure and your credit report will also be better than before. It’s better to sell your home than to simply wait and watch your home been auctioned to some one else.
